Those who are rational and knowledgable with the right temperament will always attract fortune

What makes this arbitrage game is lucrative is the very low funding cost which are readily available.

The smart big boys and fund managers are very likely playing this risk arbitrage game! Such opportunity doesn’t come often. Fortune favours the brave ones

If you have the fund, buying at the current level which is far below offer price of 200 is a good bet to make some gains with little risk.

If minority thinks that 200 is fair price, they will be paid 200. If minority reject as too low price, Offeror may offer higher price. If the offer fell through for whatever reasons, the price of MMC very likely remains over 200 as the intrinsic value is far exceeded the offer price of 200

There is no reason why Jaks will not exercise this option to raise its interest to 40%. The construction is already completed and the plant has been successfully commissioned and running. Hardly any more substantial risk left but only rewards moving forward ! I do strongly believe Jaks investment in the Vietnam IPP will be well rewarded in the coming 25 years.

This offer of RM 2 per share will depend on minority shareholders to reject or accept it. If the minority shareholders reject the offer, the Offeror has the option to raise the price to make the offer more attractive or abandon the offer altogether. If the Offeror really want to privatize MMC as the Offeror believe that it can create or get more value than the price offered, the Offerer will likely raise the offer price. The minority shareholders have to make the right guess on what will be the likely scenarios moving forward.

Agreed very likely there won't be any competing offer as the current Offeror has absolute majority control but if the Offeror really want to privatize MMC, the Offeror may have to up the offer price if minority shareholders reject the current offer price.

Singapore Exchange has recently changed take the over rule. The offer must not only be reasonable but must also be fair i.e. the exit price offered must be not lower than revised net asset value per share.

Just wondering why the insiders were selling?

Of course if the Offeror really want to take MMC private because it thinks MMC intrinsic value is more than RM 2 per share, the Offeror may likely have to raise the offer price in order to make the offer successful.

Major shareholders/Directors were busy selling may be to buy more cheap shares at only 59.5 sen via ESOS.

The worst thing that can happen to MMC when the free float is less than 25%, it will be delisted from Bursa and the minority shareholders will get completely trapped !

Don't ever try to be greedy. Best to move on looking for other undervalued stocks which currently quite a number exist. Choose an undervalued stock, make some money and repeat the process and you will be on the way to prosperity. Current pandemic offer good opportunity to those who are clear headed.

For the minority, it is in their best interest to see the proposal successful. If it fails, the price will likely to fall back prior to the announcement. In this instance, what i3lurker said is sadly quite true. No contending offer will happen as the current offerer has absolute control of MMC. If this exercise fails, minority will get nothing to gain but losses.

Those who bought structured call warrants will have a huge celebrations !

Syed Mokhtar has done similar thing much earlier. He has taken Malakoff private and later on relisted it on the stock exchange.

It is a good offer as MMC has been trading ridiculously much below the offer price. Those who think the offer is below fair value should have sold his house and every things else to accumulate the stock earlier. MMC has been valued and traded in the market at ridiculously low price and those who are smart enough buy earlier I am sure will make a good gain and likely to move on to the next stock, so to speak.
Best to move on to other undervalued stocks in the market, and currently there a number of very good stocks misunderstood or undervalued by the market.

No need to question about the war chest. These people must has done their work and knew what they are doing.

I hope those who are rational and clearheaded gain from this offer !

Didn't I wrote earlier that MMC with 5 Ports in Malaysia plus 1 in Jeddah together with a number of strategic and significant other bz is only valued a fraction of Westport that has only one port ?

If we do our home work we should knew that MMC is much undervalued as I mentioned a few times earlier.

Just wait for the news, no worry at all ! All is well and good !

Nothing to worry at all, just wait for the news !

Lately we observed that big local institutional investors were selling down Westports. May be this is good for MMC which is much under appreciated and under valued.

ImmortanJoe, what you said is absolutely make sense !

MMC own and operate 5 ports in Malaysia and 1 in Jeddah. MMC also own Malakoff, Malaysia largest IPP with international assets, and Gas Malaysia Bhd. Don't forget MMC is also a big infrastructure contractor and has various other biz such as logistics, waste management and environmental services,
Just for quick comparison: Market value of MMC is only about RM 3,5 b compared to that of West Port of about RM 14.8 b which only has one port. Go and figure it out yourselves what to do.

observatory, I could not agree more on what you wrote. Well written and argued !

Core biz is in the environmental services and laboratory testing.

Must remember PICORP is profitable and always give some dividend !

Just need to be little patient

Unappreciated, not widely known always under the radar and very undervalued.

Another round of large amount of cheap options to Directors, 71.8 m at 53.8 sen !

Investing can be very boring but lucrative if you have the right temperament. If you are looking for excitement then, you should head off to Genting!

Of course it is possible that E&O in the future may go even limit up as anything can happen in the future. We can never discount that possibility. However the price offered for the take over is reasonable as even the major prominent shareholders have excepted the offer. Property development business currently in the doldrums and it will likely take sometime for the condition to change for the better. Perhaps those who are "smart" enough to buy cheaper prior to the offer announcement could make good easy money. We can clearly see that there were a lot of active trading prior to the announcement date and those buyers can easily make quick gains !

Just be a little patient !

You are partly right but if you own PA you are getting 3% dividend. We think WZ1 likely to have something good going forward. Note that the Group CEO is buying WA, WB and PA. Very unlikely he is buying these securities especially the warrants if he expect bad news coming !

If you are smart enough, you will not convert the PA to mother as the PA is more senior and has 3% dividend and therefor should be priced or valued higher where else Mother for now has not been paying any dividend and junior to PA. Only convert PA if mother are paying much higher dividend than PA.

If you have PA, the Preference Share with 3% dividend, to covert you just convert it 1 PA to 1 mother, no need to pay any additional cash. The exercise price of 0.11 was the price paid earlier to buy one PA so now you just need to surrender your PA for mother 1 to 1.

The CEO is now buying WA ! He perhaps rightly prefer to buy PA as exposure to equity instead buying directly the mother as PA is significantly undervalued compared to mother.

“Price is what you pay. Value is what you get.”

The 1,200 MW Hai Duong IPP had managed to secure a very good deal with the Government of Vietnam with very good sets of guarantees not likely to be obtained again by any new IPP.
The IRR for the project is "officially at 12%" and with a high gearing of say 75/25 debt to equity ratio, you can quickly get the return to equity to shareholders ! What more there are no longer risks to construction delays and commissioning as the plant not only managed to be be successfully commissioned for operation but also completed ahead of schedule.
There are very few residual risks left to the plant owner apart from basically making sure the plant availability is kept above a certain guaranteed level. Most of other risks are guaranteed by the off taker and the government.
Jaks Management did mention that with its 30% current interest in the IPP will bring in a recurring RM 720 m per year over the next 25 year. Don't forget Jaks has a call option for additional 10% interest in the IPP.
Happy investing and Selamat Hari Raya Idulfitri and happy investing !

The company CEO have been collecting PA and WB. The free money by buying PA will be very soon disappear off the table !

PA should be valued higher than mother as PA has 3% yearly dividend attached.

Nothing more to pay for PA conversion, not 11 sen which you have paid for the PA. Just convert PA to WZ1 Ordinary 1 for 1 without paying additional cash. But PA should have higher value as it has 3% preferential dividend

Can convert directly one to one without any additional cash.

The conversion price of the ICPS shall be an amount equivalent to the issue price of the ICPS. Each ICPS is convertible into 1 new Share (“Conversion Ratio”). For the avoidance of doubt, no additional cash payment is required for such conversion of the ICPS by the ICPS holders.

You mean those who sell today at 84.5 sen got conned ? Yes then you are absolutely right, ceelo87 !

Warrant B exercise price is 16 sen. Say WB now at 12 sen then your cost of WZ Ordinary will be 28 sen. Far higher than WZ! current trading price of about 20 sen

Availability to keep minimum capacity for operation. To operate or not, not dependent of IPP but dependent of grid operator. Capacity payment not only enough cover debt payments but also a certain level of return on the project.

The basic problem is not so much about excess energy but transmission issues and do not concern Jaks IPP . Any how the IPP will not be much affected at all as virtually most of the payment to be received are guaranteed as long as the IPP can maintain the capacity availability as mandated under PPA.